B-195012(2), FEB 7, 1980

B-195012(2): Feb 7, 1980

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DEFENSE LOGISTICS AGENCY: ENCLOSED IS A COPY OF OUR DECISION OF TODAY DENYING THE PROTEST OF CEL-U- DEX CORPORATION CONCERNING A CONTRACT AWARDED UNDER RFP NO. THE PROCUREMENT WAS SET ASIDE FOR SMALL BUSINESSES AND CONDUCTED UNDER CONVENTIONAL NEGOTIATION PROCEDURES BECAUSE YOUR AGENCY DETERMINED THE USE OF "SMALL BUSINESS RESTRICTED ADVERTISING" PROCEDURES WAS NOT FEASIBLE OR PRACTICABLE SINCE THE ITEMS BEING PURCHASED WERE URGENTLY NEEDED. APPROXIMATELY ONE MONTH AFTER THE RFP WAS ISSUED. THE INITIAL PHASE OF THE DELIVERY SCHEDULE WAS EXTENDED. THIS SUGGESTS THAT THE DECISION TO USE CONVENTIONAL NEGOTIATION RATHER THAN "SMALL BUSINESS RESTRICTED ADVERTISING" WAS NOT BASED ON CURRENT AND ACCURATE INFORMATION.

B-195012(2), FEB 7, 1980

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GERALD POST, USAF; DEFENSE LOGISTICS AGENCY:

ENCLOSED IS A COPY OF OUR DECISION OF TODAY DENYING THE PROTEST OF CEL-U- DEX CORPORATION CONCERNING A CONTRACT AWARDED UNDER RFP NO. DLA 400-79-R- 1882. THE PROCUREMENT WAS SET ASIDE FOR SMALL BUSINESSES AND CONDUCTED UNDER CONVENTIONAL NEGOTIATION PROCEDURES BECAUSE YOUR AGENCY DETERMINED THE USE OF "SMALL BUSINESS RESTRICTED ADVERTISING" PROCEDURES WAS NOT FEASIBLE OR PRACTICABLE SINCE THE ITEMS BEING PURCHASED WERE URGENTLY NEEDED.

APPROXIMATELY ONE MONTH AFTER THE RFP WAS ISSUED, THE INITIAL PHASE OF THE DELIVERY SCHEDULE WAS EXTENDED. THIS SUGGESTS THAT THE DECISION TO USE CONVENTIONAL NEGOTIATION RATHER THAN "SMALL BUSINESS RESTRICTED ADVERTISING" WAS NOT BASED ON CURRENT AND ACCURATE INFORMATION. THEREFORE RECOMMEND THAT STEPS BE TAKEN TO ASSURE THAT PROCUREMENT DECISIONS OF THIS NATURE ARE BASED ON CURRENT AND ACCURATE INFORMATION.

WE ALSO POINT OUT THAT THE AMENDMENT TO THE RFP FAILED TO SPECIFICALLY REQUEST OFFERORS TO SUBMIT THEIR "BEST AND FINAL" OFFERS AS REQUIRED BY DEFENSE ACQUISITION REGULATION (DAR) SEC. 3-805.3(D). ALTHOUGH THIS FAILURE DOES NOT APPEAR TO HAVE PREJUDICED THE OFFERORS SINCE THE CIRCUMSTANCES SURROUNDING THE AMENDMENT PLACED THEM ON NOTICE THAT THEY SHOULD SUBMIT THEIR "BEST AND FINAL" OFFERS, WE BELIEVE FUTURE COMPLIANCE WITH DAR SEC. 3-805.3(D) IS IN ORDER TO PREVENT ANY POSSIBLE PREJUDICE TO OFFERORS.